NewBridge Asset Management, an investment management company, recently released its Q4 2025 letter for “NewBridge Large Cap Growth Equity Strategy”. A copy of the letter can be downloaded here. Equity markets continued their upward momentum in the fourth quarter, driven by resilient economic growth and solid corporate returns. In the fourth quarter, large-cap growth outperformed, while in the third quarter, small-cap and value equities exceeded the growth strategy. The NewBridge Large Cap Growth Strategy generated a positive return in the quarter, but lagged behind the benchmark, the Russell 1000® Growth Index. Most portfolio companies exceeded quarterly expectations, but a few faced declines. The biggest challenge was the contrasting returns between Uber Technologies, Inc., held in significant amounts, and Tesla, Inc., which was not owned by the portfolio. The market environment was generally favorable for the portfolio in the fourth quarter. The firm remains confident in its industry-leading companies, which are poised to deliver attractive financial results despite potential market volatility. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, NewBridge Large Cap Growth Equity Strategy highlighted Tesla, Inc. (NASDAQ:TSLA). Tesla, Inc. (NASDAQ:TSLA) designs, develops, manufactures, leases, and sells electric vehicles, as well as energy generation and storage systems. The one-month return of Tesla, Inc. (NASDAQ:TSLA) was -4.23%, and its shares gained 9.32% of their value over the last 52 weeks. On January 26, 2026, Tesla, Inc. (NASDAQ:TSLA) stock closed at $435.20 per share, with a market capitalization of $1.45 trillion.
NewBridge Large Cap Growth Equity Strategy stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its fourth quarter 2025 investor letter:
“Shares of Tesla, Inc. (NASDAQ:TSLA) were up 38% in November, as Elon Musk has strongly aligned with Trump and may benefit from the relationship. Trump signaled that he would eliminate tax credits on electric vehicles, which may put Tesla at a competitive advantage as it is the only profitable North American producer of electric vehicles.
The portfolio’s biggest challenge during the quarter was the contrast in the returns from Uber Technologies, Inc. and Tesla, Inc. The portfolio held a significant position in Uber, while it did not own Tesla. Uber was down nearly 19% during the quarter, while Tesla was up over 60% over the same period. As each company vies for future autonomous vehicle ridesharing revenue, the nearly 80% quarterly spread in stock returns seemed overdone given the time it will take Tesla to get to scale.
As outlined above, Uber has been stuck on the wrong side of the “Trump trade” that has favored Tesla. Uber treaded water in November, as perceived competition from Tesla’s full-self-driving efforts may crimp Uber over time. For example, time is the key here, as Tesla’s ability to get to scale will likely take years. We believe that fundamentals at Uber remain attractive, but it has been fighting a perceived advantage that Tesla may or may not hold in the coming years. The portfolio’s Consumer Discretionary sector holdings detracted the most from the relative return during the quarter. The primary reason was Tesla’s outperformance during the quarter. Not owning shares in Tesla, which averaged 3% in the portfolio’s benchmark, was a detriment.”
Tesla, Inc. (NASDAQ:TSLA) is in the 23rd position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 120 hedge fund portfolios held Tesla, Inc. (NASDAQ:TSLA) at the end of the third quarter, up from 115 in the previous quarter. While we acknowledge the risk and potential of Tesla, Inc. (NASDAQ:TSLA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Tesla, Inc. (NASDAQ:TSLA) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Tesla, Inc. (NASDAQ:TSLA) and shared the list of AI stocks analysts are watching. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
